For several years now, Gen Z (Generation Z, born between approximately 1995 and 2010) has been viewed with curiosity and suspicion. Prejudices range from dependence on technology and high salary expectations to criticism of the work-life balance, which the generation seems to demand as a matter of course.
But on closer inspection, it becomes clear that the idea of an alternative working time model as New Work has existed since the 1970s, as we have described here. Furthermore, the world itself has been changing for years (VUCA/BANI). The extent to which the assumptions about the generation are accurate and how this affects the insurance industry will be examined here.
Added to this are demographic developments and staff shortages, which have also reached the insurance industry. This has an impact on the quality of services and thus on the customer base. In order to attract the young Generation Z as both customers and new employees, it will therefore be useful to take a closer look at their expectations.
Gen Z expectations put to the test
Gen Z is growing up with global crises and specific concerns that make their high salary expectations understandable, for example. This is because the cost of living is constantly rising and is one of the biggest concerns for the younger generation.
Work behaviour
Contrary to preconceptions, it appears that Gen Z actually works quite a lot. According to the Institute for Employment Research, which cites the microcensus of the Federal Employment Agency and the population statistics of the Federal Statistical Office, employment among Generation Z is increasing in both part-time and full-time positions. It concludes: one less cliché.
It seems important that ideas about working conditions and the working environment reflect the spirit of the times. Gen Z demands flexibility just like everyone else. A study by the Friedrich Ebert Foundation shows the parallels and concludes that the generations are less homogeneous than previously thought.
Attitudes towards work itself are changing across society as a whole, and the younger generation has already internalised this.
Der Spiegel has collected several interesting examples of the opportunities this presents for Gen Z. These include paid social leave (McKinsey), flexible temporary work models and a four-day week with longer working hours.
Commitment and sustainability
Generation Z does not necessarily want to work less, but rather to be more self-determined. The example of social leave, i.e. paid working days spent in NGOs, shows how important social engagement and sustainability are to Gen Z. An interesting survey by Deloitte among German Gen Zers shows that, although they are slightly less concerned about environmental issues than Gen Zers worldwide, they still want to see more engagement.
It therefore seems sensible to incorporate these issues into employer branding or benefits. How exactly this can be achieved should be discussed with a human resources consultancy that can build a targeted corporate brand.
Digitalisation
There is no doubt that Gen Z children are digital natives. They have been familiar with digital media and applications since childhood. This is of crucial importance for the insurance industry, as both customers and employees of this generation will expect digital solutions for health insurance, for example. After all, insurance still plays an important role.
For companies, this means making the customer journey accessible to customers at intuitive and personalised touchpoints and providing employees with appropriate training. Information is accessed via social media. According to SiriCampus (see above), Generation Z demands security and a high degree of flexibility.
Companies should accelerate digital processes, from internal and external communication channels to recruiting. The possibilities are endless.
From apps to gamification, Gen Z is changing healthcare and driving it forward, as the Süddeutsche Zeitung writes. Digital natives can accelerate processes and expand benefits for all generations.
At the same time, all generations are concerned that artificial intelligence could threaten jobs. These concerns should be taken seriously and communicated openly. This is because Gen Z also wants to be addressed confidently and on an equal footing in internal communication.
Transparency and personal feedback
The communication style is therefore important for dealing with both Gen Z customers and employees. They prefer a short, personal approach that also makes use of digital media, from video conferencing to apps. The support of a personnel consultancy is also recommended for the possibilities of digital communication in recruiting and internal communication.
Benefits
Generation Z is viewed with scepticism, especially by boomers, when it comes to work-life- balance. However, their relationship to work is less determined by laziness than by certain values. Employee benefits should therefore be tailored to this generation:
- flexible working hours and work-life balance
- Healthcare that also includes mental health
- Digital offerings and further training
- Social values with the option of social leave
These benefits show the extent to which a company understands the philosophy of the younger generation.
Generation Z candidates should be approached via social networks and digital media. A personal approach is particularly valuable here, and a recruitment consultancy can also provide support with advice on the most important recruiting channels such as active sourcing.
Conclusion
The insurance industry should adapt its strategies to the values and needs of the generation currently entering the labour market. Gen Z is not radically different from other generations; its values and demands are more a reaction to growing uncertainties and social changes.
It is clear that this generation is no less productive, but places greater emphasis on meaningfulness and flexibility. Companies should take these expectations seriously in order to remain successful in the long term.
Flexible working time models and the integration of digital tools for customers as well as in recruiting, onboarding and internal communication are an asset for all business processes. A personnel consultancy can use its expertise to set the right course. In salary negotiations, specific benefits can also be used to increase the employer's attractiveness and at the same time demonstrate its future viability. Experienced consultants are at your disposal, and we look forward to talking to you.
